Fuelling transition to renewable energy through sustainable financing facilities
SDB bank is one of the key players in Sri Lanka’s SME banking space, and one that is proactively seeking opportunities to promote sustainable solutions to overcome the nation’s present crisis through renewable energy and energy efficiency. In this endeavor, SDB bank has recently disbursed a multimillion-rupee financing facility to Hayleys Fentons, one of Sri Lanka’s leading engineering solutions providers.
The facility provided by SDB bank has helped Hayleys Fentons to install a total of 3MW of rooftop solar photovoltaic power generation arrays and systems on two industrial buildings in Colombo (1,854kWp system) and Kandy (1,200kWp system). Together, these two systems will generate approximately 4,235,898 kWh of renewable energy each year. This investment, financed by SDB bank, will lead to an annual emission reduction of approximately 3,136 tonnes of carbon dioxide equivalent. This is equivalent to taking 700 fossil fuel-powered vehicles off the roads each year.
The loan disbursement was made at a special ceremony with the participation of senior officials from both organizations, including Acting CEO of SDB bank, Niranjan Thangarajah, Head of Business Banking – Hemal Lokugeegana, Managing Director of Hayleys Fentons, Hasith Prematillake and Director/CEO of Hayleys Solar, Roshane Perera.
Hayleys Solar, the renewable energy arm of Fentons Ltd, part of the Hayleys Group, predominantly focuses on Solar PV installations for domestic, commercial, and industrial purposes as well as utility-scale projects to enable greater utilisation of clean energy locally. Hayleys Solar has successfully completed over 85MW of solar installations island wide making it Sri Lanka’s undisputed leader in Engineering, Procurement, and Construction (EPC).
SDB bank partnered with Hayleys Fentons in August 2021 to promote the financing of solar power generation, energy efficiency and green building solutions, which are among the portfolio of services offered by the Company. SDB bank is now anticipating a significant increase in the number of businesses looking to transition to renewables. These customers can benefit from SDB bank’s Solar Loans proposition.
As the only publicly listed, specialized development bank in Sri Lanka and as a founding member of the Sri Lanka Banks Association’s Sustainable Banking Initiative, SDB bank is looking to play a pivotal role in advancing the Sustainable Finance Roadmap that has been declared by the Central Bank of Sri Lanka, including attracting blended finance solutions to fuel Sri Lanka’s sustainable recovery. The Bank also maintains strong internal standards with regard to ESG, including a Board Subcommittee on Sustainability that has been reviewing the Bank’s performance over the past year, as SDB bank reaches out to proactively engage with stakeholders and provide Sri Lankan SMEs and corporations with access to international climate finance.
Attesting to SDB bank’s commitment to sustainable energy, the bank has initiated a programme to install solar PV power generation systems at 4 of its branches during FY2022, as part of the Bank’s integrated 3-year corporate strategy, which targets achievements for financing renewables and supporting energy efficiency for customers as well as the Bank, with SDB bank looking to source as much of its own energy as possible from renewable sources. SDB bank is pleased to be contributing towards achieving Sri Lanka’s ambition of sourcing 70% of its electricity from renewable sources by 2030. The Bank is also working to partner with corporations and governmental and non-governmental organizations to achieve this goal of national importance.